Q1 Net Dollar Retention Data

We keep close track of every SaaS IPO in the past five years (since MongoDB in October 2017). Those 67 companies have finally all issued their Q1 2022 earnings. Below we summarize net dollar retention for those that shared it.

Only 55% report their NDR. Of the 67 SaaS companies we follow, only 55% of them (37 companies) report their net dollar retention in their quarterly filing. Nearly none report gross dollar retention.

Median of 120%. Median net dollar retention for those companies reporting is 120% and the average is 122%. These are very strong retention metrics in SaaS. If you’re anywhere near that, you’re doing very well. It means the current customer base is a source of growth, growing 20%+ YOY even after accounting for downgrades and churn.

Adjusted median is 107%. Since only 55% of the SaaS companies we follow actually share their net dollar retention, this data is highly subject to reporting bias whereby some companies with poor net dollar retention simply may not be reporting it. As such, we believe the median net dollar retention of 120% needs to be adjusted down. We do this by assuming those that didn’t report net dollar retention are experiencing NDR of 100% (this may be generous). Assuming the 30 non-reporting companies have NDR of 100%, the median and average net dollar retention of the entire dataset is 107% and 112% respectively.

Visit us at blossomstreetventures.com and email me directly at sammy@blossomstreetventures.com. All founders and funds welcome! We invest in companies with run rate revenue of $3mm to $30mm, with year over year growth of 20% to 50%+ depending on revenue. We lead or follow in growth rounds and special situations like inside rounds, small rounds, rushed rounds, corralling investors with our term sheet, bridges, inbetweeners, cap table clean up, and extensions. We can commit in 3 weeks and our check is $1mm to $4mm. Also visit https://blossomstreetventures.com/metrics/ for always up-to-date SaaS metrics.

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